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E23-18B The Aeronautic Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Jets, Helicopters, and Satellites. Segment
E23-18B The Aeronautic Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Jets, Helicopters, and Satellites. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibil- ity reports were being prepared. The printout of the actual operating results appeared as follows. Jets Helicopters Satellites Service revenue Variable costs $ ? $600,000 $ ? 5,500,000 ? 320,000 Contribution margin Controllable fixed costs ? 200,000 500,000 2,000,000 ? ? Controllable margin ? 95,000 255,000 Average operating assets Return on investment Instructions Determine the missing pieces of information above. 25,000,000 ? 1,500,000 15% 10% ?
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